Trademark war erupts

Telstra faces possible legal action over its
advertisements on Google.

Telstra has been caught using the trademark of competitor AAPT
to advertise mobile phone deals on Google.

The practice is the subject of legal action around the world
although Next is not aware of a previous case in Australia.

Until last week, a search for "AAPT" on Google would sometimes
result in an advertisement for Telstra Pre-Paid Plus appearing in
the sponsored links (right of screen).

The links are paid for under Google's AdWords system, in which
companies nominate a search keyword they want to trigger their
advertisement. AAPT is investigating whether it should take legal
action for damages against Telstra.

Under Google's AdWords policy, companies must not use
competitors' trademarks to advertise their services.

A Google spokesman said the search engine would not take action
to block the practice until the trademark owner complained.

AAPT's lawyers sent a letter to Google last month complaining
that it was an "obvious trademark infringement" and demanding
exclusive use of "AAPT" as an advertising keyword on Google.

But as late as last Tuesday, the Telstra advertisement still
appeared when searching for AAPT.

"How desperate is Telstra if that's the kind of strategy they
have to resort to and we have to stumble across and keep an eye on
what happens when you Google our name?" AAPT spokesman David
Havyatt said.

"Does this mean we all have to put on staff to patrol the
borders of cyberspace?"

The search term "AAPT" was included in a Google Ads purchase
without knowledge or approval, he said.

Upon learning this from Next, Telstra ordered its immediate
withdrawal.

"We have never directly or deliberately sought the use of
competitor names in Google Ads," Mr Middleton said.

Last year Telstra's directory business, Sensis, was embarrassed
when Next revealed it discovered Optimedia booking advertising on
piracy-prone peer-to-peer websites Pirate Bay and
TorrentReactor.

At the time Karina White, Sensis corporate affairs manager, said
the ads "slipped through the net" when Optimedia used online agency
Max Interactive to book the campaign.

Ms White said Max Interactive took a less conservative approach
to targeting certain demographic groups.

Trademark infringement is an international issue for Google,
with several court cases in the US.

There is speculation that Google walks a fine legal line by
abrogating responsibility for vetting trademark infringement.

Ohio loan provider Check 'n Go sued Google in the US federal
court because competitors can buy its trademarked phrase as search
keywords.

And last year a French court ruled that Google must stop using
the trademarks of European resort chain Le Meridien Hotels and
Resorts to trigger keyword ads.

AAPT is also investigating another site, Ozphonesecrets.com,
which it claims is using the AAPT keyword to generate sponsored
links.

That site is run by former Telstra workers who claim to offer
behind-the-scenes tips on phone deals.

But at the time of writing, the site only recommends Telstra
deals.

Coincidentally, Telstra also copied AAPT's logo tag line for its
latest half-year review, published last month. The message from
chairman Donald McGauchie and chief executive Sol Trujillo signed
off with a cheery promise to "tell it like it is".